The Spanish Supreme Court has issued five judgements against Silverpoint Vacations, which operates timeshares in the Canary Islands and various other sites around the world. The cases came from the Arona Court and from the Provincial Court of Santa Cruz de Tenerife, which have ordered that €169,000 must be returned to the complainants.

The first of these judgements came against the Club Paradiso Resort, where Silverpoint were ordered to pay €31,000 to the victim. Further rulings have since been passed against other Silverpoint Vacation Resorts including the Beverly Hills Club and the Hollywood Mirage.

Between 2003-2008 contracts were issued to timeshare owners which contained clauses which bound the owners to high maintenance fees and other high costs in advance of staying at the resort. Silverpoint Resorts also said that the customers could resell their timeshares for a high-profit but this simply wasn’t possible.

The Provincial Court denied status of consumers to the plaintiffs, as they were considered investors looking to obtain profit through resale. However it was also noted that “the mere possibility that they could profit from the transfer of their rights does not exclude their status as consumers”, since they did not dedicate themselves professionally to this type of operations.

Contracts the customers signed with the Beverly Hills Heights Resorts were ruled unlawful by the Supreme Court who said, “they do not respect the dictates of Law 42/1998” before going onto add: “advances are required that the contract calls deposit .That is, rather than partial breach of the law, we are faced with a lack of systematic compliance with it.”

The Supreme Court went onto declare “radical nullity” of the contracts signed by the plaintiffs, specifying that “it is so clear that the defendant [Silverpoint] is circumventing that the contract does not transcribe arts. 10, 11 and 12 of Law, nor does it mention, as it was obliged, the “character of legal rules applicable to the contract” so that the acquirer could not know what was the legal regime of his contract.”

The court also ruled that Silverpoint Vacations should pay another three customers fees of £10,400.00 – £17,994.00 and £28,715.00 after similar breaches of the timeshare contract and laws.

The legal representation of Silverpoint Vacations didn’t share the view held by the Supreme Court saying: “with due respect, we do not share the view of the Supreme Court, which is reflected in the judgments in question and, therefore, all remedies will be exhausted against those judgments, both to National level and at the community level “.

If you believe that have a timeshare contract you have signed is breaking any laws, please contact Mercantile Claims for advice.

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